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Question: Discuss the different employment types and relationships relevant to agency law, and analyze the advantages and disadvantages of each type specific to Acme Fireworks.

10 Oct 2022,12:35 AM

 

Y​‌‍‍‍‌‍‍‌‍‌‌‌‍‍‌‍‍‌‌‍​ou are the manager of Acme Fireworks, a fireworks retailer who sells fireworks, puts on ground display fireworks, and large aerial display fireworks. The company started in the owner’s garage two years ago and now has 15 employees that you manage. The company started as a sole proprietorship, and the owner has never changed the entity. The owner has informed you that the company has received inquiries from several large businesses wondering if the company could create several fireworks displays on a regular basis. The owner told the inquirers that the company could fill such display orders, and a price per display was agreed upon. It was discussed that most of the cost for a fireworks display is for skilled labor, insurance, and the actual service of setting off the fireworks. No other details were discussed. The owner is anticipating that new employees will need to be hired, but he is worried that if the large orders for fireworks displays do not continue, the company will not have the funds to pay the new employees. The owner is now considering changing the business entity, but he does not know what entity to form or how to form it.

The owner has asked you to do the following:

Determine if the contracts with the businesses will be governed by common law or the Uniform Commercial Code (UCC), and explain why. Analyze whether the owner formed a contract with the businesses, and apply the five essential elements of an enforceable contract. Explain the potential personal liability to Acme F​‌‍‍‍‌‍‍‌‍‌‌‌‍‍‌‍‍‌‌‍​ireworks if a spectator is injured by a stray firework from a fireworks display. Discuss the different employment types and relationships relevant to agency law, and analyze the advantages and disadvantages of each type specific to Acme Fireworks. Explain why Acme Fireworks should not operate as a sole proprietorship. Recommend a new business entity, and provide rationale to support your recommendation. For each task, be sure to analyze the relevant law, apply the facts to the law, and make a conclusion. The paper Must be 8 to 10 double-spaced pages in length (not including title and references pages) and formatted according to APA style as outlined in the Writing Center (Links to an external site.).

 

Expert answer


There are three types of employment relationships: independent contractor, employment at will, and employment contract. An independent contractor is hired to do a specific job and is not part of the company's regular workforce. The company does not control what the contractor does or how they do it, and the contractor is not entitled to benefits. The advantage of using an independent contractor is that the company doesn't have to pay benefits or payroll taxes. The disadvantage is that the company can't control what the contractor does or how they do it, so there is a risk that the job will not be done properly.

 

An Employment at Will relationship means that either the employee or employer can terminate the relationship without notice or cause. The advantage of this type of relationship is that it is easy to terminate. The disadvantage is that there is no security for the employee and they could be fired at any time for no reason.

 

An Employment Contract relationship means that the employee and employer agree to terms specifying when and why the employee can be terminated. The advantage of this type of relationship is that it provides security for the employee. The disadvantage is that it can be more difficult to terminate than an Employment at Will relationship.

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